Gold surges above US$3,400 on safe haven demand
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The news: Gold prices have extended their record run above USD3,400 per ounce as the US dollar weakened and uncertainty over the economic impact of escalating trade tensions between the US and China boosted demand for the safe-haven asset.
The numbers: Benchmark gold bullion prices are trading at a fresh record high of USD3,431.73 ($5,349.20) an ounce, up 0.23% from the US trading hours settlement of USD3,425.30.
The context: The fresh gains came as the US dollar tumbled to its lowest level in three years, with investor confidence in the US economy suffering another hit as US President Donald Trump ramped up his attacks on Federal Reserve Chair Jerome Powell, raising fears over the central bank's independence. A weaker greenback makes bullion more appealing for other currency holders.
Gold, which is considered a hedge against economic uncertainties and a highly liquid asset, has now rallied more than 25% since the start of this year, supported by tariff disputes, expectations of interest rate cuts and strong central bank buying.
